Regulation of grocery goods sector will have benefits for businesses, consumers in Carlow – Deering

4th February, 2016

Fine Gael TD for Carlow/Kilkenny, Pat Deering has said that new regulation of the grocery goods sector by the Minister for Jobs, Enterprise and Innovation Richard Bruton TD, will be good for businesses and will also protect consumers in Carlow.

“The new regulations, signed today by Minister Bruton, cover food and drink products and bring increased fairness to the grocery goods sector. The regulations prioritise job creation in the sector as well as prioritising the best interests of consumers with a focus on safe food.

“Grocery goods contracts will now be required to be in writing and contracts cannot be varied or terminated except with express consent of both parties.

“The new regulations are good for suppliers also, as they can now require the retailer or wholesaler to provide forecast of the goods that will be needed.

“There is also now a prohibition on suppliers being required to pay for stocking/listing goods; for promotion; for marketing costs; for better positioning on shelves; for advertising; for wastage; for shrinkage – except in strictly specified circumstances. Suppliers must also be paid for goods within 30 days

“The regulations have real teeth, as the Competition and Consumer Protection Commission has substantial powers under the Consumer Protection Act 2007 to enforce compliance with these regulations, including a graded system of penalties up to a fine of €100,000 or two years in prison, as well as a provision explicitly enabling suppliers to take proceedings for damages in the Circuit Court.

“Minister Bruton has worked hard to modernise this sector in the drive for efficiency, job creation and consumer protection. This is yet another step along the road to delivering one of the key commitments of the Programme for Government.

“Fine Gael has a long term economic plan to keep the economic recovery going which will ensure further job creation success for those working in the grocery goods sector. The plan has three steps: more and better jobs, making work pay more than welfare, and investment in better public services, which will only be possible as a result of the increased revenue generated by creating more jobs. This plan will ensure that more people feel the benefits of a recovering economy in their own lives.”